14. SUBSEQUENT EVENTS

Management has evaluated all subsequent events to determine if events or transactions occurring through the date the condensed consolidated financial statements were issued, require adjustment to or disclosure in the condensed consolidated financial statements.

Foreign Currency Exchange Rates

The Argentine peso to United States dollar exchange rate was 14.8466, 14.9690 and 12.9441 at August 11, 2016, June 30, 2016 and December 31, 2015, respectively.

Equity Compensation Plan

On July 11, 2016, the Board of Directors of Algodon Wines & Luxury Development Group, Inc. (the “Company”) adopted the 2016 Stock Option Plan (the “2016 Plan”). Under the 2016 Plan, 1,224,308 shares of common stock of the Company are authorized for issuance, with an automatic annual increase on January 1 of each year equal to 2.5% of the total number of shares of common stock outstanding on such date, on a fully diluted basis.

On July 19, 2016, options for the purchase of an aggregate 400,000 shares of the Company’s common stock were granted to two members of the Company’s Board of Directors, under the 2016 Plan.

Equity Transactions

During the period from July 22, 2016 through the filing date of this report, the Company sold 125,250 shares of its common stock at a price of $2.00 per share for cash proceeds of $250,500.